Debt Reduction Company is Sued

February 23, 2008 - Debt reduction companies rarely deliver on their promises, and often take your money and run. At least in Florida something is being done to stop them, when this week Florida’s Attorney General, Bill McCollum, filed a lawsuit against debt reduction companies in Clay and Broward counties.

The Florida Times Union reported today that United Debt Solutions and United Debt Specialists of Clay County (Both entities are owed by the same people) are accused of demanding fees far in excess of the legally allowable limit for debt negotiators. Additionally, the McCollum contends that the companies did absolutely nothing for their clients but kept the money earmarked for creditors, but debited clients’ bank accounts without permission.

Also, this week, a Broward County attorney was sued by McCollum for advising clients that by merely sending a letter from her office, creditors could not pursue debts.

The lesson here is that no one can erase accurate information from a credit report unless the debt is at least seven (7) years old or if the debtor files a bankruptcy.